Cardano (ADA) Price Could Reclaim $0.40 Usage Heats Up

Cardano’s price con­tin­ues to con­sol­i­date above the $0.35 sup­port zone. An In-depth on-chain analy­sis pro­vides insight into the next ADA price action. 

ADA price failed to break above the $40 area amid last week’s alt­coin mar­ket ral­ly. Recent on-chain data read­ings show that Car­dano net­work par­tic­i­pants have not thrown in the towel. 

Cardano Continues to Attract New Users. 

Car­dano price slid into a con­sol­i­da­tion phase after fail­ing to clear the $40 resis­tance last week. How­ev­er the ongo­ing ADA price cor­rec­tion has not dis­cour­aged new users from troop­ing into the Car­dano ecosys­tem. The IntoThe­Block chart below shows that new user adop­tion rate has remained rel­a­tive­ly high over the past week. 

ADA new user adop­tion rate reached a month­ly peak of 32.3% on Nov. 9. As depict­ed below, it has remained above 30% in each of the sub­se­quent five days, a feat it only achieved eight times in the last three months combined. 

The new adop­tion rate met­ric eval­u­ates the per­cent­age of address­es on a blockchain net­work that made their first-ever trans­ac­tion on a giv­en day. This pro­vides insights into the rate at which new users have been troop­ing in to the Car­dano net­work amid the ongo­ing price correction. 

This sug­gests the new­com­ers’ trans­ac­tions have been piv­otal in help­ing ADA price main­tain the vital $35 sup­port lev­el over the past week.

Read More: Best Cryp­to Sign-Up Bonus­es in 2023

Network Usage Is Heating Up Amid Correction Phase 

Inter­est­ing­ly, the ris­ing trans­ac­tion activ­i­ty has not been lim­it­ed to the new entrant alone. On-chain data read­ings show that exist­ing par­tic­i­pates are also per­form­ing an unusu­al­ly high num­ber of trans­ac­tions. As depict­ed below, Car­dano active address­es ratio has trend­ed above 0.8% in each of the last 10 days, dat­ing back to Nov. 5.

. 

The active address­es met­ric cap­tures the per­cent­age share of total exist­ing users that per­formed at least one trans­ac­tion on a giv­en day. Strate­gic investors con­sid­er it a bull­ish sig­nal when user activ­i­ty ratio remains high dur­ing a price downtrend.

In sum­ma­ry, the ris­ing trans­ac­tion­al activ­i­ty among new join­ers and exist­ing mar­ket par­tic­i­pants could heat up Car­dano net­work demand in the days ahead. And if it per­sists, the bulls could cap­i­tal­ize to force an ear­ly ADA price rebound. 

Read More:  Top 9 Telegram Chan­nels for Cryp­to Sig­nals in 2023

ADA Price Prediction: Early Rebound From $0.35?

Draw­ing infer­ences from the on-chain met­rics ana­lyzed above, Car­dano price looks set to rebound toward $0.40, if the bulls can endure the ongo­ing con­sol­i­da­tion phase.

The Glob­al In/Out of the Mon­ey (GIOM) data, which groups the cur­rent ADA hold­ers accord­ing to their entry prices, also affirms this pos­i­tive forecast.

It, shows that the bulls have mount­ed a for­mi­da­ble sup­port buy wall around the $0.35 area. As depict­ed below, 203,400 hold­ers had bought 1.79 bil­lion ADA at the aver­age price of $12.24. If those investors HODL firm­ly, they could trig­ger an instant ADA price rebound as predicted.

But if the bears can push buy wall aside, ADA price could tum­ble toward $0.30.

Con­verse­ly, the bulls could wres­tle con­trol of the mar­ket again, if ADA price scales $40. But, in this case, the 53,630 hold­ers that bought 2.2 bil­lion ADA at the aver­age price of $0.38 could mount a resis­tance. if that resis­tance gives way, ADA price will like­ly ral­ly toward $0.40.

Read More: Best Upcom­ing Air­drops in 2023